Core Viewpoint - Meta Platforms is considered a strong candidate for a stock split by 2030 due to its significant growth potential and current high share price [2][3][4]. Financial Performance - Meta's sales grew 26% year over year to $51.2 billion, and without a one-time noncash tax expense, its earnings per share (EPS) would have increased by 20.2% year over year to $7.25 [7][6]. - The company incurred a significant tax charge and increased capital expenditures, which affected market perception despite solid third-quarter results [5][6]. User Engagement and Growth - Daily active users across Meta's platforms grew 8% year over year to 3.54 billion, indicating strong user engagement [8]. - Meta is leveraging artificial intelligence (AI) to enhance user experience and drive revenue growth through content recommendations and AI-based advertising tools [9][11]. Future Prospects - Meta is investing in AI glasses, which CEO Mark Zuckerberg believes will be the primary interface for interacting with AI in the future [11][12]. - The company is positioned to capitalize on the ongoing AI revolution, which is expected to significantly impact its business and revenue streams [13]. Stock Performance and Valuation - Meta's current stock price is approximately $627, and it would need a compound annual growth rate of 9.8% to reach $1,000 within five years, making it a viable candidate for a stock split thereafter [14].
Prediction: This Unstoppable AI Stock Will Split by 2030